Procurement of Works & User s Guide

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1 S T A N D A R D B I D D I N G D O C U M E N T S Procurement of Works & User s Guide The World Bank April 2015

2 ii This document is subject to copyright. This document may be used and reproduced for non-commercial purposes only. Any commercial use, including without limitation reselling, charging to access, redistribute, or for derivative works such as unofficial translations based on these documents is not allowed.

3 iii April 2015 Revision This revision dated April 2015 expands paragraph (j) of Section IV Letter of Bid on eligibility of bidders. March 2012 Revision This revision dated March 2012 incorporates a number of changes reflecting the experience of the Bank in using previous versions of this document (last updated version was dated August 2010), corrrects inconsistencies within document clauses, and incorporates the changes as per the Guidelines for Procurement of Goods, Works and Non-Consulting Services, issued in January, This revision also incorporates in Section VIII, General Conditions (GC), the most recent changes agreed between the Multilateral Development Banks (MDBs) and the International Federation of Consulting Engineers (FIDIC). August 2010 Revision This revision dated August 2010 is to include in the Section VII, General Conditions the clauses 6.23 and 6.24 regarding to Workers Organisations and Non-Discrimination and Equal Opportunity. May 2010 Revision This revision dated May 2010 is, inter alia, to modify the Eligibility and Fraud and Corruption clauses to align their text with that of the May 2010 corrigendum to the Procurement Guidelines, reflecting the changes related to Fraud and Corruption as per the Agreement for Mutual Enforcement of Debarment Decisions between the Multilateral Development Banks, to which the World Bank Group is a signatory.this Standard Bidding Document is applicable to Procurement of Works funded under IBRD- or IDA- financed projects whose Legal Agreement makes reference to (a) the Guidelines for Procurement under IBRD Loans and IDA Credits, dated May 2004, revised October 2006, or (b) the Guidelines for Procurement under IBRD Loans and IDA Credits, dated May 2004, revised October 2006 and May April 2007 Revision This revision dated April 2007 is to modify ITB 3.1, ITB 4.4, ITB 19.8 of Section I, Instructions to Bidders, and GC Sub-Clauses 1.15 and 15.6, to align their text with that of the corrigenda of the Procurement Guidelines, issued in October, 2006, to reflect the changes related to Fraud and Corruption as per the World Bank s Sanctions Reform package approved by the Board of Directors in August, 2006.

4 iv March 2007 Revision This revision dated March 2007 is to correct various minor mistakes throughout various sections of these Standard Bidding Documents, which were identified after the May 2006 revision was released. The mistakes relate to some of the changes agreed in March 2006 by the Multilateral Development Banks (MDBs) and the International Federation of Consulting Engineers (FIDIC). May 2006 Revision This revision dated May 2006 incorporates in Section VII, General Conditions, the most recent changes agreed between the Multilateral Development Banks (MDBs) and the International Federation of Consulting Engineers (FIDIC), to the conditions of contract that these two groups previously harmonized. The small changes introduced in this revision are aimed to further improve the balance of contract risks between the Employer and the Contractor along contract performance. Another important revision to the harmonized conditions of contract is the inclusion of several versions of GC Clause 15.6, Corrupt or Fraudulent Practices, each one specific to each participating MBD. May 2005 Revision This revision dated May 2005 is to conform, to the extent possible without contravening the May 2004 Procurement Guidelines, to the model provided by the Master Procurement Document for Procurement of Works & User s Guide harmonized among various Multilateral Development Banks (MDBs) and approved by the Heads of Procurement of the MDBs and International Financial Institutions (IFIs) in October In this revision, two alternative Sections III, Evaluation and Qualification Criteria, are included. One is the default alternative and assumes that prequalification has taken place before bidding. The other is for those exceptional cases when, subject to prior approval of the IBRD, postqualification takes place. The major change introduced in this revision is the incorporation, under Section VII, General Conditions, of a harmonized version of contract conditions which text has been agreed among the International Federation of Consulting Engineers (FIDIC) and various MDBs for its inclusion in the Master Procurement Documents for Procurement of Works & User s Guide. The harmonization of the General Conditions has made unnecessary the great number of deviations to the General Conditions of Contract (FIDIC s Conditions of Contract for Construction ), introduced in the former SBD Procurement of Works through Particular Conditions of Contract to account for all non-applicable general conditions. Given that the harmonized General Conditions is based extensively on FIDIC s Conditions of Contract for Construction, first edition, published by FIDIC in 1999, and being FIDIC the sole copyright owner of such publication, the IBRD has subscribed a license agreement with FIDIC that authorize the use of the harmonized version of such conditions of contract by the Borrowers

5 v of the World Bank when preparing bidding documents in accordance with these SBD Procurement of Works. Within Section VII, General Conditions, the most significant change is the introduction in Clause 20, Claims, Disputes and Arbitration, of a Dispute Board which may be comprised of one or three members, as may be determined by the Employer and specified in the Contract Data (Part A of Section VIII, Particular Conditions) without regard to the estimated cost of the contract. Section VIII, Particular Conditions, consists now of two parts: Part A, comprising the Contract Data and Part B, Specific Provisions, containing clauses specific to each contract.

6 vi Preface This Standard Bidding Documents for Procurement of Works (SBDW) has been prepared by the World Bank to be used for the procurement of admeasurement (unit price or rate) type of works through International Competitive Bidding (ICB) in projects that are financed in whole or in part by the World Bank. It is consistent with the January 2011 [edition of the] Guidelines for Procurement for Good, Works and Non Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers. This Bidding Documents are not suitable for lump sum contracts without substantial changes to the method of payment and price adjustment, and to the Bill of Quantities, Schedules of Activities, and so forth. This SBDW is based on the July 2004 version of the Master Bidding Documents for Procurement of Works and User s Guide, prepared by the Multilateral Development Banks and International Financing Institutions. The Master Bidding Documents reflect best practices by these institutions. This SBDW reflect the structure and the provisions of the Master Bidding Documents, except where specific considerations within the World Bank have required a change. This SBDW assumes that prequalification has taken place before bidding. The process of prequalification shall follow the procedure specified in Standard Prequalification Documents: Procurement of Works, issued by the World Bank. Prequalification shall be followed for all major works. Exceptionally, with previous approval of the World Bank, post-qualification might be appropriate. An alternative Section III, Evaluation and Qualification Criteria, is also provided to address this exceptional possibility. The document is organized into two main components: Standard Bidding Document; and User s Guide. Those wishing to submit comments or questions on these Bidding Documents or to obtain additional information on procurement under World Bank-financed projects are encouraged to contact: Procurement Policy and Services Group Operations Policy and Country Services Vice Presidency The World Bank 1818 H Street, NW Washington, D.C U.S.A. pdocuments@worldbank.org

7 vii Summary Description These Standard Bidding Documents for Procurement of Works and its User s Guide apply either when a prequalification process has taken place before bidding or when a prequalification process has not taken place before bidding (provided alternative documents should be selected as applicable). A brief description of these documents is given below. Summary SBD for Procurement of Works PART 1 BIDDING PROCEDURES Section I: Instructions to Bidders (ITB) This Section provides relevant information to help Bidders prepare their bids. Information is also provided on the submission, opening, and evaluation of bids and on the award of Contracts. Section I contains provisions that are to be used without modification. Section II. Bid Data Sheet (BDS) This Section includes provisions that are specific to each procurement and that supplement Section I, Instructions to Bidders. Section III. Evaluation and Qualification Criteria (alternative Section III to be used when Prequalification has taken place before bidding) This Section specifies the criteria to determine the lowest evaluated bid and to ascertain the continued qualification of the Bidder to perform the contract. Section III. Evaluation and Qualification Criteria (alternative Section III to be used when Prequalification has not taken place before bidding) This Section includes the criteria to determine the lowest evaluated bid and the qualifications of the Bidder to perform the contract. Section IV: Bidding Forms This Section includes the forms which are to be completed by the Bidder and submitted as part of his Bid. Section V. Eligible Countries This Section contains information regarding eligible countries.

8 viii Section VI. Bank Policy Corrupt and Fraudulent Practices This Section provides the Bidders with the reference to the Bank s policy in regard to corrupt and fraudulent practices applicable to this process. PART 2 WORKS REQUIREMENTS Section VII. Works Requirements This Section contains the Specification, the Drawings, and supplementary information that describe the Works to be procured. PART 3 CONDITIONS OF CONTRACT AND CONTRACT FORMS Section VIII. General Conditions (GC) This Section contains the general clauses to be applied in all contracts. The text of the clauses in this Section shall not be modified. Section IX. Particular Conditions (PC) This Section consists of Part A, Contract Data, which contains data, and Part B, Specific Provisions, which contains clauses specific to each contract. The contents of this Section supplement the General Conditions and shall be prepared by the Employer. Section X: Contract Forms This Section contains forms which, once completed, will form part of the Contract. The forms for Performance Security and Advance Payment Security, when required, shall only be completed by the successful Bidder after contract award.

9 ix User s Guide for SBD for Procurement of Works The Guide to the Bidding Documents contains detailed explanations and recommendations to Employers on how to prepare a bidding document for a specific procurement of Works and related services. The Guide is not a part of the Bidding Documents.

10 x B I D D I N G D O C U M E N T S for Procurement of [insert identification of the proposed Works] ICB No: [insert ICB number] Project: [insert name of Project] Employer: [insert name of Employer] Country: [insert Country] Issued on: [insert date]

11 xi Table of Contents PART 1 Bidding Procedures...1 Section I. Instructions to Bidders...3 Section II. Bid Data Sheet...29 Section III. Evaluation and Qualification Criteria...35 (Following Prequalification)...35 Section III. Evaluation and Qualification Criteria (Without Prequalification)...41 Section IV. Bidding Forms...57 Section V. Eligible Countries PART 2 Works Requirements Section VII. Works Requirements PART 3 Conditions of Contract and Contract Forms Section VIII. General Conditions (GC) Section IX. Particular Conditions (PC) Section X. Contract Forms User s Guide...1

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13 PART 1 BIDDING PROCEDURES

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15 3 Section I. Instructions to Bidders Table of Clauses A. General Scope of Bid Source of Funds Corrupt and Fraudulent Practices Eligible Bidders Eligible Materials, Equipment, and Services...9 B. Contents of Bidding Documents Sections of Bidding Documents Clarification of Bidding Documents, Site Visit, Pre-Bid Meeting Amendment of Bidding Documents...11 C. Preparation of Bids Cost of Bidding Language of Bid Documents Comprising the Bid Letter of Bid and Schedules Alternative Bids Bid Prices and Discounts Currencies of Bid and Payment Documents Comprising the Technical Proposal Documents Establishing the Qualifications of the Bidder Period of Validity of Bids Bid Security Format and Signing of Bid...18 D. Submission and Opening of Bids Sealing and Marking of Bids Deadline for Submission of Bids Late Bids Withdrawal, Substitution, and Modification of Bids Bid Opening...20 E. Evaluation and Comparison of Bids Confidentiality Clarification of Bids Deviations, Reservations, and Omissions Determination of Responsiveness Nonmaterial Nonconformities...22

16 4 Section I. Instructions to Bidders 31. Correction of Arithmetical Errors Conversion to Single Currency Margin of Preference Subcontractors Evaluation of Bids Comparison of Bids Qualification of the Bidder Employer s Right to Accept Any Bid, and to Reject Any or All Bids...26 F. Award of Contract Award Criteria Notification of Award Signing of Contract Performance Security...27

17 Section I. Instructions to Bidders 5 Section I. Instructions to Bidders A. General 1. Scope of Bid 1.1 In connection with the Invitation for Bids specified in the Bid Data Sheet (BDS), the Employer, as specified in the BDS, issues these Bidding Documents for the procurement of Works as specified in Section VII, Works Requirements. The name, identification, and number of lots (contracts) of this International Competitive Bidding (ICB) process are specified in the BDS. 1.2 Throughout these Bidding Documents: (a) the term in writing means communicated in written form and delivered against receipt; (b) except where the context requires otherwise, words indicating the singular also include the plural and words indicating the plural also include the singular; and (c) day means calendar day. 2. Source of Funds 2.1 The Borrower or Recipient (hereinafter called Borrower ) specified in the BDS has received or has applied for financing (hereinafter called funds ) from the International Bank for Reconstruction and Development or the International Development Association (hereinafter called the Bank ) in an amount specified in the BDS, toward the project named in the BDS. The Borrower intends to apply a portion of the funds to eligible payments under the contract(s) for which these Bidding Documents are issued. 2.2 Payment by the Bank will be made only at the request of the Borrower and upon approval by the Bank, and will be subject, in all respects, to the terms and conditions of the Loan (or other financing) Agreement. The Loan (or other financing) Agreement prohibits a withdrawal from the Loan (or other financing) account for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the knowledge of the Bank, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations. No party other than the Borrower shall derive any rights from the Loan (or other financing) Agreement or have any claim to the proceeds of the Loan (or other financing).

18 6 Section I. Instructions to Bidders 3. Corrupt and Fraudulent Practices 3.1 The Bank requires compliance with its policy in regard to corrupt and fraudulent practices as set forth in Section VI. 3.2 In further pursuance of this policy, Bidders shall permit and shall cause its agents (whether declared or not), subcontractors, sub-consultants, service providers, or suppliers and any personnel thereof, to permit the Bank to inspect all accounts, records and other documents relating to any prequalification process, bid submission, and contract performance (in the case of award), and to have them audited by auditors appointed by the Bank. 4. Eligible Bidders 4.1 A Bidder may be a firm that is a private entity, a governmentowned entity subject to ITB 4.5 or any combination of such entities in the form of a joint venture (JV) under an existing agreement or with the intent to enter into such an agreement supported by a letter of intent. In the case of a joint venture, all members shall be jointly and severally liable for the execution of the Contract in accordance with the Contract terms. The JV shall nominate a Representative who shall have the authority to conduct all business for and on behalf of any and all the members of the JV during the bidding process and, in the event the JV is awarded the Contract, during contract execution. Unless specified in the BDS, there is no limit on the number of members in a JV. 4.2 A Bidder shall not have a conflict of interest. Any Bidder found to have a conflict of interest shall be disqualified. A Bidder may be considered to have a conflict of interest for the purpose of this bidding process, if the Bidder: (a) directly or indirectly controls, is controlled by or is under common control with another Bidder; or (b) receives or has received any direct or indirect subsidy from another Bidder; or (c) has the same legal representative as another Bidder; or (d) has a relationship with another Bidder, directly or through common third parties, that puts it in a position to influence the bid of another Bidder, or influence the decisions of the Employer regarding this bidding process; or (e) participates in more than one bid in this bidding process. Participation by a Bidder in more than one Bid will result in the disqualification of all Bids in which such Bidder is

19 Section I. Instructions to Bidders 7 involved. However, this does not limit the inclusion of the same subcontractor in more than one bid; or (f) any of its affiliates participated as a consultant in the preparation of the design or technical specifications of the works that are the subject of the bid; or (g) any of its affiliates has been hired (or is proposed to be hired) by the Employer or Borrower as Engineer for the Contract implementation; or (h) would be providing goods, works, or non-consulting services resulting from or directly related to consulting services for the preparation or implementation of the project specified in the BDS ITB 2.1 that it provided or were provided by any affiliate that directly or indirectly controls, is controlled by, or is under common control with that firm; or (i) has a close business or family relationship with a professional staff of the Borrower (or of the project implementing agency, or of a recipient of a part of the loan) who: (i) are directly or indirectly involved in the preparation of the bidding documents or specifications of the contract, and/or the bid evaluation process of such contract; or (ii) would be involved in the implementation or supervision of such contract unless the conflict stemming from such relationship has been resolved in a manner acceptable to the Bank throughout the procurement process and execution of the contract. 4.3 A Bidder may have the nationality of any country, subject to the restrictions pursuant to ITB 4.7. A Bidder shall be deemed to have the nationality of a country if the Bidder is constituted, incorporated or registered in and operates in conformity with the provisions of the laws of that country, as evidenced by its articles of incorporation (or equivalent documents of constitution or association) and its registration documents, as the case may be. This criterion also shall apply to the determination of the nationality of proposed subcontractors or sub-consultants for any part of the Contract including related Services. 4.4 A Bidder that has been sanctioned by the Bank in accordance with the above ITB 3.1, including in accordance with the Bank s Guidelines on Preventing and Combating Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants ( Anti-Corruption Guidelines ), shall be ineligible to

20 8 Section I. Instructions to Bidders be prequalified for, bid for, or be awarded a Bank-financed contract or benefit from a Bank-financed contract, financially or otherwise, during such period of time as the Bank shall have determined. The list of debarred firms and individuals is available as specified in the BDS. 4.5 Bidders that are Government-owned enterprises or institutions in the Employer s Country may participate only if they can establish that they (i) are legally and financially autonomous (ii) operate under commercial law, and (iii) are not dependent agencies of the Employer. To be eligible, a government-owned enterprise or institution shall establish to the Bank s satisfaction, through all relevant documents, including its Charter and other information the Bank may request, that it: (i) is a legal entity separate from the government (ii) does not currently receive substantial subsidies or budget support; (iii) operates like any commercial enterprise, and, inter alia, is not obliged to pass on its surplus to the government, can acquire rights and liabilities, borrow funds and be liable for repayment of its debts, and can be declared bankrupt; and (iv) is not bidding for a contract to be awarded by the department or agency of the government which under their applicable laws or regulations is the reporting or supervisory authority of the enterprise or has the ability to exercise influence or control over the enterprise or institution. 4.6 A Bidder shall not be under suspension from bidding by the Employer as the result of the operation of a Bid Securing Declaration. 4.7 Firms and individuals may be ineligible if so indicated in Section V and (a) as a matter of law or official regulations, the Borrower s country prohibits commercial relations with that country, provided that the Bank is satisfied that such exclusion does not preclude effective competition for the supply of goods or the contracting of works or services required; or (b) by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the Borrower s country prohibits any import of goods or contracting of works or services from that country, or any payments to any country, person, or entity in that country. 4.8 This bidding is open only to prequalified Bidders unless specified in the BDS.

21 Section I. Instructions to Bidders A Bidder shall provide such evidence of eligibility satisfactory to the Employer, as the Employer shall reasonably request. 5. Eligible Materials, Equipment, and Services 5.1 The materials, equipment and services to be supplied under the Contract and financed by the Bank may have their origin in any country subject to the restrictions specified in Section V, Eligible Countries, and all expenditures under the Contract will not contravene such restrictions. At the Employer s request, Bidders may be required to provide evidence of the origin of materials, equipment and services. B. Contents of Bidding Documents 6. Sections of Bidding Documents 6.1 The Bidding Documents consist of Parts 1, 2, and 3, which include all the Sections specified below, and which should be read in conjunction with any Addenda issued in accordance with ITB 8. PART 1 Bidding Procedures Section I. Instructions to Bidders (ITB) Section II. Bid Data Sheet (BDS) Section III. Evaluation and Qualification Criteria Section IV. Bidding Forms Section V. Eligible Countries Section VI. Bank Policy-Corrupt and Fraudulent Practices PART 2 Works Requirements Section VII. Works Requirements PART 3 Conditions of Contract and Contract Forms Section VIII. General Conditions (GC) Section IX. Particular Conditions (PC) Section X. Contract Forms 6.2 The Invitation for Bids issued by the Employer is not part of the Bidding Documents. 6.3 Unless obtained directly from the Employer, the Employer is not responsible for the completeness of the Bidding Documents, responses to requests for clarification, the minutes of the pre-bid meeting (if any), or Addenda to the Bidding Documents in accordance with ITB 8. In case of any

22 10 Section I. Instructions to Bidders contradiction, documents obtained directly Employer shall prevail. from the 6.4 The Bidder is expected to examine all instructions, forms, terms, and specifications in the Bidding Documents and to furnish with its bid all information and documentation as is required by the Bidding Documents. 7. Clarification of Bidding Documents, Site Visit, Pre-Bid Meeting 7.1 A Bidder requiring any clarification of the Bidding Documents shall contact the Employer in writing at the Employer s address specified in the BDS or raise its enquiries during the pre-bid meeting if provided for in accordance with ITB 7.4. The Employer will respond in writing to any request for clarification, provided that such request is received no later than fourteen (14) days prior to the deadline for submission of bids. The Employer shall forward copies of its response to all Bidders who have acquired the Bidding Documents in accordance with ITB 6.3, including a description of the inquiry but without identifying its source. If so specified in the BDS, the Employer shall also promptly publish its response at the web page identified in the BDS. Should the clarification result in changes to the essential elements of the Bidding Documents, the Employer shall amend the Bidding Documents following the procedure under ITB 8 and ITB The Bidder is advised to visit and examine the Site of Works and its surroundings and obtain for itself on its own responsibility all information that may be necessary for preparing the bid and entering into a contract for construction of the Works. The costs of visiting the Site shall be at the Bidder s own expense. 7.3 The Bidder and any of its personnel or agents will be granted permission by the Employer to enter upon its premises and lands for the purpose of such visit, but only upon the express condition that the Bidder, its personnel, and agents will release and indemnify the Employer and its personnel and agents from and against all liability in respect thereof, and will be responsible for death or personal injury, loss of or damage to property, and any other loss, damage, costs, and expenses incurred as a result of the inspection. 7.4 If so specified in the BDS, the Bidder s designated representative is invited to attend a pre-bid meeting. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at that stage.

23 Section I. Instructions to Bidders The Bidder is requested to submit any questions in writing, to reach the Employer not later than one week before the meeting. 8. Amendment of Bidding Documents 7.6 Minutes of the pre-bid meeting, if applicable, including the text of the questions asked by Bidders, without identifying the source, and the responses given, together with any responses prepared after the meeting, will be transmitted promptly to all Bidders who have acquired the Bidding Documents in accordance with ITB 6.3. Any modification to the Bidding Documents that may become necessary as a result of the prebid meeting shall be made by the Employer exclusively through the issue of an Addendum pursuant to ITB 8 and not through the minutes of the pre-bid meeting. Nonattendance at the pre-bid meeting will not be a cause for disqualification of a Bidder. 8.1 At any time prior to the deadline for submission of bids, the Employer may amend the Bidding Documents by issuing addenda. 8.2 Any addendum issued shall be part of the Bidding Documents and shall be communicated in writing to all who have obtained the Bidding Documents from the Employer in accordance with ITB 6.3. The Employer shall also promptly publish the addendum on the Employer s web page in accordance with ITB To give Bidders reasonable time in which to take an addendum into account in preparing their bids, the Employer should extend the deadline for the submission of bids, pursuant to ITB 22.2 C. Preparation of Bids 9. Cost of Bidding 9.1 The Bidder shall bear all costs associated with the preparation and submission of its Bid, and the Employer shall not be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process. 10. Language of Bid 10.1 The Bid, as well as all correspondence and documents relating to the bid exchanged by the Bidder and the Employer, shall be written in the language specified in the BDS. Supporting documents and printed literature that are part of the Bid may be in another language provided they are accompanied by an accurate translation of the relevant passages in the language

24 12 Section I. Instructions to Bidders specified in the BDS, in which case, for purposes of interpretation of the Bid, such translation shall govern. 11. Documents Comprising the Bid 11.1 The Bid shall comprise the following: (a) (b) Letter of Bid and Appendix to Bid, in accordance with ITB 12; completed schedules as required, including priced Bill of Quantities, in accordance with ITB 12 and 14; (c) Bid Security or Bid-Securing Declaration, in accordance with ITB 19.1; (d) (e) alternative bids, if permissible, in accordance with ITB 13; written confirmation authorizing the signatory of the Bid to commit the Bidder, in accordance with ITB 20.2; (f) documentary evidence in accordance with ITB 17 establishing the Bidder s continued qualified status or, if post-qualification applies, as specified in accordance with ITB 4.8, the Bidder s qualifications to perform the contract if its Bid is accepted; (g) (h) Technical Proposal in accordance with ITB 16; and any other document required in the BDS In addition to the requirements under ITB 11.1, bids submitted by a JV shall include a copy of the Joint Venture Agreement entered into by all members. Alternatively, a letter of intent to execute a Joint Venture Agreement in the event of a successful bid shall be signed by all members and submitted with the bid, together with a copy of the proposed Agreement The Bidder shall furnish in the Letter of Bid information on commissions and gratuities, if any, paid or to be paid to agents or any other party relating to this Bid. 12. Letter of Bid and Schedules 12.1 The Letter of Bid and Schedules, including the Bill of Quantities, shall be prepared using the relevant forms furnished in Section IV, Bidding Forms. The forms must be completed without any alterations to the text, and no substitutes shall be accepted except as provided under ITB All blank spaces shall be filled in with the information requested.

25 Section I. Instructions to Bidders Alternative Bids 13.1 Unless otherwise specified in the BDS, alternative bids shall not be considered When alternative times for completion are explicitly invited, a statement to that effect will be included in the BDS, as will the method of evaluating different times for completion Except as provided under ITB 13.4 below, Bidders wishing to offer technical alternatives to the requirements of the Bidding Documents must first price the Employer s design as described in the Bidding Documents and shall further provide all information necessary for a complete evaluation of the alternative by the Employer, including drawings, design calculations, technical specifications, breakdown of prices, and proposed construction methodology and other relevant details. Only the technical alternatives, if any, of the lowest evaluated Bidder conforming to the basic technical requirements shall be considered by the Employer When specified in the BDS, Bidders are permitted to submit alternative technical solutions for specified parts of the Works, and such parts will be identified in the BDS, as will the method for their evaluating, and described in Section VII, Works Requirements. 14. Bid Prices and Discounts 14.1 The prices and discounts (including any price reduction) quoted by the Bidder in the Letter of Bid and in the Bill of Quantities shall conform to the requirements specified below The Bidder shall fill in rates and prices for all items of the Works described in the Bill of Quatities. Items against which no rate or price is entered by the Bidder shall be deemed covered by the rates for other items in the Bill of Quantities and will not be paid for separately by the Employer. An item not listed in the priced Bill of Quantities shall be assumed to be not included in the Bid, and provided that the Bid is determined substantially responsive notwithstanding this omission, the average price of the item quoted by substantially responsive bidders will be added to the bid price and the equivalent total cost of the bid so determined will be used for price comparison The price to be quoted in the Letter of Bid, in accordance with ITB 12.1, shall be the total price of the Bid, excluding any discounts offered.

26 14 Section I. Instructions to Bidders 14.4 The Bidder shall quote any discounts and the methodology for their application in the Letter of Bid, in accordance with ITB Unless otherwise specified in the BDS and the Contract, the rates and prices quoted by the Bidder are subject to adjustment during the performance of the Contract in accordance with the provisions of the Conditions of Contract. In such a case, the Bidder shall furnish the indices and weightings for the price adjustment formulae in the Schedule of Adjustment Data and the Employer may require the Bidder to justify its proposed indices and weightings If so specified in ITB 1.1, bids are being invited for individual lots (contracts) or for any combination of lots (packages). Bidders wishing to offer discounts for the award of more than one Contract shall specify in their bid the price reductions applicable to each package, or alternatively, to individual Contracts within the package. Discounts shall be submitted in accordance with ITB 14.4, provided the bids for all lots (contracts) are opened at the same time All duties, taxes, and other levies payable by the Contractor under the Contract, or for any other cause, as of the date 28 days prior to the deadline for submission of bids, shall be included in the rates and prices and the total Bid Price submitted by the Bidder. 15. Currencies of Bid and Payment 15.1 The currency(ies) of the bid and the currency(ies) of payments shall be as specified in the BDS Bidders may be required by the Employer to justify, to the Employer s satisfaction, their local and foreign currency requirements, and to substantiate that the amounts included in the unit rates and prices and shown in the Schedule of Adjustment Data in the Appendix to Bid are reasonable, in which case a detailed breakdown of the foreign currency requirements shall be provided by Bidders. 16. Documents Comprising the Technical Proposal 17. Documents Establishing the 16.1 The Bidder shall furnish a Technical Proposal including a statement of work methods, equipment, personnel, schedule and any other information as stipulated in Section IV Bidding Forms, in sufficient detail to demonstrate the adequacy of the Bidder s proposal to meet the work requirements and the completion time In accordance with Section III, Evaluation and Qualification Criteria, to establish that the Bidder continues to meet the

27 Section I. Instructions to Bidders 15 Qualifications of the Bidder criteria used at the time of prequalification, the Bidder shall provide in the corresponding information sheets included in Section IV, Bidding Forms, updated information on any assessed aspect that changed from that time, or if postqualification applies as specified in ITB 4.8, the Bidder shall provide the information requested in the corresponding information sheets included in Section IV, Bidding Forms If a margin of preference applies as specified in accordance with ITB 33.1, domestic Bidders, individually or in joint ventures, applying for eligibility for domestic preference shall supply all information required to satisfy the criteria for eligibility specified in accordance with ITB Any change in the structure or formation of a Bidder after being prequalified and invited to Bid (including, in the case of a JV, any change in the structure or formation of any member thereto) shall be subject to the written approval of the Employer prior to the deadline for submission of Bids. Such approval shall be denied if (i) a Bidder proposes to associate with a disqualified Bidder or in case of a disqualified joint venture, any of its members; (ii) as a consequence of the change, the Bidder no longer substantially meets the qualification criteria set forth in Section III, Qualification Criteria and Requirements; or (iii) in the opinion of the Employer, the change may result in a substantial reduction in competition. Any such change should be submitted to the Employer not later than fourteen (14) days after the date of the Invitation for Bids. 18. Period of Validity of Bids 18.1 Bids shall remain valid for the period specified in the BDS after the bid submission deadline date prescribed by the Employer in accordance with ITB A bid valid for a shorter period shall be rejected by the Employer as non responsive In exceptional circumstances, prior to the expiration of the bid validity period, the Employer may request Bidders to extend the period of validity of their bids. The request and the responses shall be made in writing. If a bid security is requested in accordance with ITB 19, it shall also be extended for twenty-eight (28) days beyond the deadline of the extended validity period. A Bidder may refuse the request without forfeiting its bid security. A Bidder granting the request shall not be required or permitted to modify its bid, except as provided in ITB 18.3.

28 16 Section I. Instructions to Bidders 18.3 If the award is delayed by a period exceeding fifty-six (56) days beyond the expiry of the initial bid validity, the Contract price shall be determined as follows: (a) In the case of fixed price contracts, the Contract price shall be the bid price adjusted by the factor specified in the BDS. (b) In the case of adjustable price contracts, no adjustment shall be made. (c) In any case, bid evaluation shall be based on the bid price without taking into consideration the applicable correction from those indicated above. 19. Bid Security 19.1 The Bidder shall furnish as part of its bid, either a Bid- Securing Declaration or a bid security as specified in the BDS, in original form and, in the case of a bid security, in the amount and currency specified in the BDS A Bid-Securing Declaration shall use the form included in Section IV, Bidding Forms If a bid security is specified pursuant to ITB 19.1, the bid security shall be a demand guarantee in any of the following forms at the Bidder s option: (a) an unconditional guarantee issued by a bank or financial institution (such as an insurance, bonding or surety company); (b) an irrevocable letter of credit; (c) a cashier s or certified check; or (d) another security specified in the BDS, from a reputable source from an eligible country. If the unconditional guarantee is issued by a financial institution located outside the Employer s Country, the issuing financial institution shall have a correspondent financial institution located in the Employer s Country to make it enforceable. In the case of a bank guarantee, the bid security shall be submitted either using the Bid Security Form included in Section IV, Bidding Forms, or in another substantially similar format approved by the Employer prior to bid submission. The bid security shall be valid for twenty-eight (28) days beyond the original validity period of the bid, or beyond any period of extension if requested under ITB 18.2.

29 Section I. Instructions to Bidders If a bid security or Bid Securing Delclaration is specified pursuant to ITB 19.1, any bid not accompanied by a substantially responsive bid security or Bid-Securing Declaration shall be rejected by the Employer as non responsive If a bid security is specified pursuant to ITB 19.1, the bid security of unsuccessful Bidders shall be returned as promptly as possible upon the successful Bidder s signing the Contract and furnishing the performance security pursuant to ITB The bid security of the successful Bidder shall be returned as promptly as possible once the successful Bidder has signed the Contract and furnished the required performance security The bid security may be forfeited or the Bid-Securing Declaration executed: (a) if a Bidder withdraws its bid during the period of bid validity specified by the Bidder on the Letter of Bid, or any extension thereto provided by the Bidder; or (b) if the successful Bidder fails to: (i) (ii) sign the Contract in accordance with ITB 41; or furnish a performance security in accordance with ITB The bid security or the Bid-Securing Declaration of a JV shall be in the name of the JV that submits the bid. If the JV has not been legally constituted into a legally enforceable JV at the time of bidding, the bid security or the Bid-Securing Declaration shall be in the names of all future members as named in the letter of intent referred to in ITB 4.1 and ITB If a bid security is not required in the BDS pursuant to ITB 19.1, and (a) (b) if a Bidder withdraws its bid during the period of bid validity specified by the Bidder on the Letter of Bid, or if the successful Bidder fails to sign the Contract in accordance with ITB 41; or furnish a performance security in accordance with ITB 42; the Borrower may, if provided for in the BDS, declare the Bidder ineligible to be awarded a contract by the Employer for a period of time as stated in the BDS.

30 18 Section I. Instructions to Bidders 20. Format and Signing of Bid 20.1 The Bidder shall prepare one original of the documents comprising the bid as described in ITB 11 and clearly mark it ORIGINAL. Alternative bids, if permitted in accordance with ITB 13, shall be clearly marked ALTERNATIVE. In addition, the Bidder shall submit copies of the bid, in the number specified in the BDS and clearly mark them COPY. In the event of any discrepancy between the original and the copies, the original shall prevail The original and all copies of the bid shall be typed or written in indelible ink and shall be signed by a person duly authorized to sign on behalf of the Bidder. This authorization shall consist of a written confirmation as specified in the BDS and shall be attached to the bid. The name and position held by each person signing the authorization must be typed or printed below the signature. All pages of the bid where entries or amendments have been made shall be signed or initialed by the person signing the bid In case the Bidder is a JV, the Bid shall be signed by an authorized representative of the JV on behalf of the JV, and so as to be legally binding on all the members as evidenced by a power of attorney signed by their legally authorized representatives Any inter-lineation, erasures, or overwriting shall be valid only if they are signed or initialed by the person signing the bid. D. Submission and Opening of Bids 21. Sealing and Marking of Bids 21.1 The Bidder shall enclose the original and all copies of the bid, including alternative bids, if permitted in accordance with ITB 13, in separate sealed envelopes, duly marking the envelopes as ORIGINAL, ALTERNATIVE and COPY. These envelopes containing the original and the copies shall then be enclosed in one single envelope The inner and outer envelopes shall: (a) bear the name and address of the Bidder; (b) be addressed to the Employer in accordance with ITB 22.1; (c) bear the specific identification of this bidding process specified in the BDS 1.1; and

31 Section I. Instructions to Bidders 19 (d) bear a warning not to open before the time and date for bid opening If all envelopes are not sealed and marked as required, the Employer will assume no responsibility for the misplacement or premature opening of the bid. 22. Deadline for Submission of Bids 22.1 Bids must be received by the Employer at the address and no later than the date and time specified in the BDS. When so specified in the BDS, bidders shall have the option of submitting their bids electronically. Bidders submitting bids electronically shall follow the electronic bid submission procedures specified in the BDS The Employer may, at its discretion, extend the deadline for the submission of bids by amending the Bidding Documents in accordance with ITB 8, in which case all rights and obligations of the Employer and Bidders previously subject to the deadline shall thereafter be subject to the deadline as extended. 23. Late Bids 23.1 The Employer shall not consider any bid that arrives after the deadline for submission of bids, in accordance with ITB 22. Any bid received by the Employer after the deadline for submission of bids shall be declared late, rejected, and returned unopened to the Bidder. 24. Withdrawal, Substitution, and Modification of Bids 24.1 A Bidder may withdraw, substitute, or modify its bid after it has been submitted by sending a written notice, duly signed by an authorized representative, and shall include a copy of the authorization in accordance with ITB 20.2, (except that withdrawal notices do not require copies). The corresponding substitution or modification of the bid must accompany the respective written notice. All notices must be: (a) prepared and submitted in accordance with ITB 20 and ITB 21 (except that withdrawals notices do not require copies), and in addition, the respective envelopes shall be clearly marked WITHDRAWAL, SUBSTITUTION, MODIFICATION; and (b) received by the Employer prior to the deadline prescribed for submission of bids, in accordance with ITB Bids requested to be withdrawn in accordance with ITB 24.1 shall be returned unopened to the Bidders No bid may be withdrawn, substituted, or modified in the interval between the deadline for submission of bids and the

32 20 Section I. Instructions to Bidders expiration of the period of bid validity specified by the Bidder on the Letter of Bid or any extension thereof. 25. Bid Opening 25.1 Except in the cases specified in ITB 23 and 24, the Employer shall publicly open and read out in accordance with ITB 25.3 all bids received by the deadline, at the date, time and place specified in the BDS, in the presence of Bidders` designated representatives and anyone who choose to attend. Any specific electronic bid opening procedures required if electronic bidding is permitted in accordance with ITB 22.1, shall be as specified in the BDS First, envelopes marked WITHDRAWAL shall be opened and read out and the envelope with the corresponding bid shall not be opened, but returned to the Bidder. No bid withdrawal shall be permitted unless the corresponding withdrawal notice contains a valid authorization to request the withdrawal and is read out at bid opening. Next, envelopes marked SUBSTITUTION shall be opened and read out and exchanged with the corresponding bid being substituted, and the substituted bid shall not be opened, but returned to the Bidder. No bid substitution shall be permitted unless the corresponding substitution notice contains a valid authorization to request the substitution and is read out at bid opening. Envelopes marked MODIFICATION shall be opened and read out with the corresponding bid. No bid modification shall be permitted unless the corresponding modification notice contains a valid authorization to request the modification and is read out at bid opening. Only bids that are opened and read out at bid opening shall be considered further All other envelopes shall be opened one at a time, reading out: the name of the Bidder and whether there is a modification; the total Bid Price, per lot (contract) if applicable, including any discounts and alternative bids; the presence or absence of a bid security, if required; and any other details as the Employer may consider appropriate. Only discounts and alternative bids read out at bid opening shall be considered for evaluation. The Letter of Bid and the Bill of Quantities are to be initialed by representatives of the Employer attending bid opening in the manner specified in the BDS. The Employer shall neither discuss the merits of any bid nor reject any bid (except for late bids, in accordance with ITB 23.1) The Employer shall prepare a record of the bid opening that shall include, as a minimum: the name of the Bidder and whether there is a withdrawal, substitution, or modification;

33 Section I. Instructions to Bidders 21 the Bid Price, per lot (contract) if applicable, including any discounts and alternative bids; and the presence or absence of a bid security, if one was required. The Bidders representatives who are present shall be requested to sign the record. The omission of a Bidder s signature on the record shall not invalidate the contents and effect of the record. A copy of the record shall be distributed to all Bidders. E. Evaluation and Comparison of Bids 26. Confidentiality 26.1 Information relating to the evaluation of bids and recommendation of contract award shall not be disclosed to Bidders or any other persons not officially concerned with the bidding process until information on Contract award is communicated to all Bidders in accordance with ITB Any attempt by a Bidder to influence the Employer in the evaluation of the bids or Contract award decisions may result in the rejection of its bid Notwithstanding ITB 26.2, from the time of bid opening to the time of Contract award, if a Bidder wishes to contact the Employer on any matter related to the bidding process, it shall do so in writing. 27. Clarification of Bids 27.1 To assist in the examination, evaluation, and comparison of the bids, and qualification of the Bidders, the Employer may, at its discretion, ask any Bidder for a clarification of its bid, given a reasonable time for a response. Any clarification submitted by a Bidder that is not in response to a request by the Employer shall not be considered. The Employer s request for clarification and the response shall be in writing. No change, including any voluntary increase or decrease, in the prices or substance of the bid shall be sought, offered, or permitted, except to confirm the correction of arithmetic errors discovered by the Employer in the evaluation of the bids, in accordance with ITB If a Bidder does not provide clarifications of its bid by the date and time set in the Employer s request for clarification, its bid may be rejected.

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